• Euro maintains an inconclusive mood near recent tops vs. the US Dollar.
• Stocks in Europe open Monday’s session with a mixed bias.
• EUR/USD keeps the trade around the 1.1240/45 band on Monday.
• Mixed Chinese results seem to have bolstered the risk complex so far.
• The NY Empire State index will be next on tap on the US calendar.

The Euro (EUR) alternates gains with losses around the 1.1240 zone vs. the US Dollar (USD) in the wake of the opening bell in the old continent at the beginning of the week.

In the meantime, spot keeps the trade in the area of yearly highs well north of 1.1200 the figure on the back of the equally irresolute price action around the Greenback, all against the backdrop of steady consensus around another 25 bps rate hike by the Federal Reserve and the European Central Bank (ECB) later in the month.

The possibility that the Fed may be nearing the end of its tightening campaign is contributing to the lack of traction in the Greenback. This view has gained momentum recently, as there are indications of cooling US consumer prices and a persistent downward trend in producer prices.

At present, the market has already largely priced in the expected 25 bps rate hike by both the ECB and the Fed. However, there is still much discussion about the potential future actions of these central banks as they work to normalize their monetary policies, particularly with growing concerns about a possible economic slowdown on both sides of the Atlantic.

According to the latest CFTC Positioning Report, net longs in EUR dropped to around 140.1K contracts in the week ending on July 11, which is the lowest level seen since mid-March